Listing ID: 82153
2021 sales impacted by supply chain challenges. Seller has accelerated inventory ordering for 2022 and is on track, with current pipeline demand to generate $1MM in sales for 2022. Current sales pipeline includes requests for large orders with a hospital, engineering plant, home builders and architects.
This greenhouse and landscaping business provides a variety of merchandise and services including, but not limited to; plant materials (trees, shrubs, perennials, annuals), related retail merchandise (garden/yard art, tools, chemicals, memorial art, seed) design components (mulch, soil, pavers/block) as well as the services of planting, landscape design/installation and related work, including snow removal.
The greenhouse and retail business has been a heavily branded staple in this region since the 1920’s. The current owner recently merged this well known brick and mortar business with his ten-year old landscaping/construction business.
Since the merger, substantial improvements have been implemented including the addition of point of sale software providing inventory management and extensive reporting capabilities.
Additional SOPs have been put into place that include a retail employee manual, inventory/ordering procedures, detailed record-keeping, and a trackable sales & marketing strategy . These upgrades have improved the merged businesses’ efficiency and increased profitability.
Residential & Commercial Services:
Softscapes (plant materials install, etc.)
Trimming & Maintenance
Hardscapes (Retaining walls/patios)
Mowing & Fertilizer Applications
Landscape Design & Installation
Sales by Category:
Plant Materials/Retail 49%
Snow Removal 3%
- Asking Price: $400,000
- Cash Flow: $161,000
- Gross Revenue: $766,000
- EBITDA: $101,000
- FF&E: $225,000
- Inventory: $150,000
- Inventory Included: Yes
- Established: 1923
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:11,100
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Perennial, Rose and Annual Greenhouses (4 structures):5,400+ square feet. Retail Store and Offices: 2,000 square feet. Maintenance Shop:2,800 square feet. Customer Parking: 20 spaces. Lot Size: Approx 4 acres
Seller anticipates a transition period and is willing to provide training to accommodate a smooth transfer. In addition, multiple resources exist to provide guidance to new ownership.
Owner transitioning to retirement and other pursuits.
Well-run business with exceptional management and long term customer relationships. This business is one of the few in the area that provides bulk mulch for sale/delivery. Only business in the region providing bulk gardening seed. No competitors in the region have a landscaping construction division to compliment their greenhouse/nursery retail offerings. This business benefits from a 100 year-old brand well recognized in the region.
Products: gift shop/retail – additional products, increase contractor sales; Services: Irrigation, more commercial work, specialized residential work, chemical application; Internet Sales; Resume growing more product on site; Increase staff size to accommodate more landscaping/contractor revenue
The business was founded in 1923, making the business 99 years old.
The sale shall include inventory valued at $150,000, which is included in the suggested price.
The business has 7FT, 4PT employees and is located in a building with estimated square footage of 11,100 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell companies. Nonetheless, the true factor and the one they tell you might be 2 totally different things. As an example, they may say "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competition, recent reduction in revenues, or an array of various other factors. This is why it is really crucial that you not depend absolutely on a seller's word, however rather, utilize the seller's solution along with your overall due diligence. This will paint a much more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money in order to cover items such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new clients? Often times, businesses have repeat clients, which develop the core of their day-to-day profits. Certain factors such as brand-new competitors growing up around the location, road construction, and also staff turnover can affect repeat consumers and adversely impact future revenues. One essential point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business often, the better the possibility to construct a returning client base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional mean household income influence future revenue potential?